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Path independent multiplicatively decomposable inequality measures

  • Mª Casilda Lasso de la Vega

    (Universidad del País Vasco)

  • Ana Marta Urrutia

    (Universidad del País Vasco)

Foster and Shneyerov (2000) explore an additive decomposition property for inequality measures that they call path independent decomposition. They characterise the class of measures that have this property. Taking their results as a reference, we seek here to generalise the notion of decomposability, and to characterise inequality measures that admit path independent multiplicative decomposition. It is shown that all the measures in this family can be generated on the basis of Atkinson’s index for value 1 of the inequality aversion parameter. (Copyright: Fundación SEPI)

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Article provided by Fundación SEPI in its journal Investigaciones Económicas.

Volume (Year): 29 (2005)
Issue (Month): 2 (May)
Pages: 379-387

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Handle: RePEc:iec:inveco:v:29:y:2005:i:2:p:379-387
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  1. Foster, James E. & Shneyerov, Artyom A., 2000. "Path Independent Inequality Measures," Journal of Economic Theory, Elsevier, vol. 91(2), pages 199-222, April.
  2. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
  3. Eytan Sheshinski, 1977. "Taxation, Inflation, and Monetary Policy," NBER Working Papers 0203, National Bureau of Economic Research, Inc.
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